360networks, Inc. levels reportedly plunged to 28 last week over uncertainty regarding pending debt payments. The company is looking for additional funding to meet a gap of close to $350 million it was counting on Alcatel to provide and has yet to announce how it will secure the money. Dealers also noted that telecom equipment maker Alcatel will not put more money into 360networks after it wrote off the remaining $500 million of a $700 million investment in the company two weeks ago. Calls to a company spokeswoman were not returned by press time.
The company's debt levels last traded in the 43 range when the company announced its earnings were significantly lower than anticipated (LMW, 5/20). Dealers have remarked that the company is taking one of the biggest hits from an over-saturated telecom market.